The gap it fills
Owner-operators often drive their tractors home, to a repair shop or to a restaurant on a day off. If the trip is not in the business of the motor carrier, the carrier's liability policy may not apply, and a personal auto policy usually excludes a tractor. Non-trucking liability, often shortened to NTL, is designed to cover liability during that personal use.
Bobtail versus non-trucking
The terms are often used as if they were the same, but forms differ. Bobtail coverage traditionally focuses on driving the tractor without a trailer. Non-trucking coverage focuses on whether you are under dispatch, regardless of the trailer. Some policies exclude coverage any time you are hauling for anyone, even without a trailer. Read how your policy defines covered use, and ask the agent to explain how it fits with your carrier's policy.
Why carriers require it
Many motor carriers require leased-on owner-operators to carry NTL and to name the carrier as an additional insured, because the carrier can be sued over a crash involving its leased equipment even when the driver was off duty. The lease should state this requirement.
What it does not cover
- Damage to your own tractor
- which needs physical damage coverage
- Cargo or freight
- Trips made under dispatch for the carrier
- Use of the truck for another carrier without permission
Choosing a limit
The carrier may set a minimum. Above that, the limit is a judgment about your personal assets and risk. Ask for quotes at the required limit and one level higher to compare.
Frequently asked questions
Is NTL the same as my carrier's liability insurance?
No. The carrier's policy covers you under dispatch. NTL is your own policy for times outside dispatch.
Do I need NTL if I run under my own authority?
Usually not. Your primary auto liability policy covers both business and personal use of the truck, subject to its terms.